02 February 2023, Thursday, 16:58 916

Sergiy Groza, GNT Group’s Owner: Argentem Creek Partners Started Enforcing Debt Once the Terminal Became a Valuable Asset

Editor: Кіра Молчанова

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The GNT Group’s creditors, Argentem Creek Partners (ACP) and Innovatus Capital Partners (Innovatus), started enforcing the Group’s debt only after the terminal had become a valuable asset. Volodymyr Naumenko and Sergiy Groza, the owners of the GNT Group, stated this in their interview with Censor Business.

The business people told that the loan of US$ 75 million was obtained from the ACP in 2019 against the pledge of the company’s corporate rights, with the value exceeding the loan amount severalfold. The US$ 20 million loan from Innovatus was received in 2021; it was secured by the double amount in grain and corporate rights. The war against russia complicated the repayment of these loans. However, the commencement of the grain corridor operation gave rise to opportunities to settle the loans. However, the creditors suddenly initiated the debt enforcement in late December amidst the grain corridor’s operations.

The GNT Group’s owners believe that the creditors did so because, with the grain corridor in operation, Odesa Seaport became one of the few Ukrainian ports operating, and the GNT could potentially become a profitable asset.

According to Sergiy Groza, about 1.5 million tonnes of grain were transshipped via the GNT Group’s terminal in the Odesa Commercial Seaport over the six months of the operation of the grain corridor. In his opinion, it made the terminal interesting for the hedge fund or a potential third-party buyer.

“Even in 2020, the value of the terminal alone was three times as high as the loan amount. At that time, the supply of transshipment facilities was excessive. By now, many terminals have been damaged. The rates for transshipment went up. Multinationals are not entering our market. Thus, the price for a company that also trades in grain is still larger than the aggregate debt. “The Cayman Islands creditors can still earn more (even considering legal costs) by selling the GNT Group in a non-transparent transaction,” Volodymyr Naumenko suggested.

According to Groza, some market players mentioned offers for the GNT Group received via intermediaries in private conversations with him. The possibility of the sale to foreign companies was mentioned as well.

“I can’t discuss it in more detail yet. We are checking all the information now,” he said.

The GNT Group disclosed earlier that the company was challenging the ACP-initiated unlawful decisions made by registrars and courts before courts of law to prevent the grain terminal’s operations from being blocked. The GNT Group’s owners believe that, by doing so, the creditors are trying to devalue the business for the subsequent non-transparent resale of the company’s assets to an interested third party.

It was reported in January 2023 that Kernel signed an agreement with its creditors to exempt two trenches of guaranteed loans of US$ 300 million each from repayment until June 30, 2023. According to the holding’s notice to the Warsaw Stock Exchange, the deferral of the debt repayment was needed due to complications caused by russia’s invasion of Ukraine to the grain and oil export logistics.

In October last year, Nibulon engaged Lazard, the world’s largest independent investment bank, to audit the company and restructure its debt. The company’s debt to financial institutions, including the International Finance Corporation and the EBRD, totals about US$ 500 million.